Thursday, December 1, 2016

New Portfolio Top Five 2017

The end of 2016 is very close so it is the right time to start a new portfolio of precious metals stocks. To remind my readers, this year the Top Five Portfolio consisted of five picks:
  1. Fresnillo plc
  2. Claude Resources (in the mid year this company was replaced with B2 Gold)
  3. Newmarket Gold (now Kirkland Lake)
  4. Fortuna Silver
  5. Richmont Mines
The chart below shows the results delivered by my portfolio (for comparison, I have plotted the returns delivered by GDX and S&P500):

As the chart shows, between December 16, 2015 and November 30, 2016 the portfolio delivered a return of 130% (GDX: 48% and S&P 500: 6%). Well, despite a strong correction in the precious metals sector the Top Five Portfolio is still performing very well (much better than the broad precious metals market).

That is why I want to repeat this experiment and construct a new portfolio for 2017. This time it is going to be a little bit different. Let me explain.

A new portfolio will consist of five picks. I think a few picks may be the same as in 2016 but a few new companies will surely be added.

Next, contrary to this year, I am going to be more active. It means that some rebalancing is possible. If I find a new and, in my opinion, a better company I am going to replace an old pick with this new one.

Now, what criteria do I use to decide whether a pick qualifies to my portfolio? Here they are:

  1. Only producers - My picks do not include any exploring company. Simply put, explorers are riskier than producers, and I want to limit risks as much as possible. What is more, these producers must hold at least two operating mines.
  2. Debt free - Debt is also risky, so my top companies hold either very small debt or even no debt at all.
  3. Low costs of production - My picks are low-cost producers. If I am wrong claiming that this bull cycle in gold is intact, low-cost producers should perform relatively better than other PM-related stocks. It means that losses incurred by investors should be relatively low.
  4. Catalysts - Looking for the best stocks, I am trying to find companies with some near-term catalysts defined as a big chance for a relevant increase in production, a possible acquisition or management change etc.
Now, an important message. The 2017 Top Five Portfolio is a paid service. It will cost $50 (fifty US dollars).

Within the next two weeks I will notify you on this blog that the portfolio is ready to be dispatched.

What will you get for this price? Let me list:
  • five stock picks
  • portfolio rebalancing (if I decide to replace an old pick with a new one you will get this new pick for free)
  • regular updates (at least one per quarter) - the updates should include my comments on financial results, operating results etc.
  • alerts - you will be notified if there is any important issue related to the stock pick
All these picks, comments, alerts etc. will be delivered through email (PDF file) to the subscribers

Simply put - you pay $50 and I am doing the job for you.

That's it. Quite simple I guess.

All details, pay buton and notifications will be available in the  section "Top Five 2017". 

Last but not least. Because it is a paid service I will not comment on the new portfolio on this blog, Seeking Alpha etc. The picks or comments on them will be available only for paid subscribers.

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